Bloodbath: Take XLF Profits Now!

Lock in 23% Gainer

By Bryan Bottarelli
Thursday, September 04, 2008 2:30 PM EDT
Thu, 4 Sep 2008 18:30:00 GMT

PLAY: Sell your XLF September 22 Puts (XLF UV) at or above $1.40, good for the day.

Dear Bottarelli Research Member,

I’m not going to lie: We have an all-out bloodbath on our hands.

As I write, the Dow is down over 320 points, and there are absolutely no safe-havens available. Oil is down. Gold is down. Transports are down. Utilities are down. Chips are down. And on and on and on.

Luckily for us, we were able to use this downside selling pressure to our advantage, taking profits today on plays like the SDS September 66 Calls (SDS IN) and the BX September 20 Puts (BX UD). And now, it’s time to keep the profit string going by locking in gains on our latest play, the XLF September 22 Puts (XLF UV).

XLF

As you know, we entered these puts earlier today for $1.18 and they just crossed the tape at $1.45, good for a super-fast 23% return. In a market like this, we need to be as nimble as possible. Therefore, let’s take the money and run!

PLAY: Sell your XLF September 22 Puts (XLF UV) at or above $1.40, good for the day.

*FOLLOW UP NOTE: Looking back at our CF September 135 Puts (CF UV), it’s clear that I sold this position too early. Sure, a quick 36% gain was nice. But over the last two days, shares of CF have continued to get slammed, which pushed these contracts all the way up to $15.70 per contract. That’s a whopping 214% above our $5.00 entry price. If you had the foresight to hold onto these puts, congrats on a wonderful trade. But be sure to take your money off the table now!

CF

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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